2008 (1) TMI 719

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.... JDR, for the Respondent. [Order (Oral)]. - The appellant is required to pre-deposit duty amount of Rs. 72,215/- and penalty of Rs. 10,000/-. They were availing Cenvat credit on breakages of glass bottles which were cleared from their factory after filling them with the aerated waters. They were also getting some compensation from their dealers for the breakage of the glass bottles. Revenue ....

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....Ltd. v. CCE, Calcutta-III - 2002 (150) E.L.T. 432 (Tri. - Kolkata) has upheld the plea that they are eligible to avail Cenvat credit on breakage glasses after they are cleared from the factory. Same view has been expressed in CCE, Mumbai-I v. Hagel Capsule Industries Limited - 2000 (124) E.L.T. 1012 (Tribunal) and CCE, Bangalore v. Eros Pharma (P) Ltd. - 1994 (73) E.L.T. 72 (Tribunal). He submits ....

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....nt of credit has bean held to be wrong utilization. So long  as they availed the credit when the glasses were broken at that point both the authorities did not dispute the fact that credit has been taken wrongfully but subsequent compensation received on broken glasses has been given nexus to the availment of credit. Prima facie, there is no provision for such a view to be taken to hold the u....